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Question: weekly demand for sameswing cell phones at a top sell...

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Weekly demand for Same-swing cell phones at a Top Sell store is normally distributed with a mean of 400 and a standard deviation of 150. Samsung takes three weeks to supply a Top Sell order. Top Sell is targeting a cycle service level of 98 percent and monitors its inventory continuously.

a) The manager orders a fixed quantity of 1,000 Same-swing cell phones every time he/she places an order. How much cycle stock does Top Sell carry?

b) What is the expected average amount of inventory of Same-swing cell phones carried at Top Sell?

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